Finance committee reviews 2022 audit, OPEB liability and timeline to catch up audits

Williamsport's finance committee on May 20 reviewed the city's draft fiscal year 2022 financial statements and heard from outside auditors that the report carries a disclaimer of opinion because auditors lacked full information to complete a standard audit.

The committee heard that the city's net position remains negative largely because of other post-employment benefits (OPEB) liability. "That negative hundred and 125,000,000 never, never ceases to put a bit of a, you know, sinking feeling in the pit of your stomach," said Jamie Livermore, director of finance. Kim Stank, an auditor with Zankovsky, confirmed the statements were "very similar to prior years" and that the disclaimer reflected missing information needed for a full audit.

Committee members pressed staff on fund balances and timing. Jamie Livermore said the general fund's total fund balance in 2022 showed about $7,200,000 and that revenues exceeded expenditures by roughly $2,700,000. "So part of the jump is that, but then we also had a year where ... we actually did spend significantly less," Livermore said, explaining part of the stronger position relative to prior expectations.

On the schedule to get the city back on a current audit timeline, the auditor said work on the 2023 audit is underway and the team expects to begin in the summer, aiming to complete the 2023 audit by September if component-unit audits are available. "We're hoping to have the '23 audit done by the September," Kim Stank said. The committee discussed a target of having certified ending-balance numbers available during the council's December budget process if possible.

Officials also noted challenges created by component units that are behind on their own audits. Stank said the parking authority and the redevelopment authority (RDA), which includes a Land Bank, will need to get current. "Those audits will all need to be finalized as well to be included in your financial statements," Stank said. Committee members agreed to help coordinate with those entities when needed to avoid further delays.

The committee deferred formal action until the full council meeting later in the week, where members said they would review the statements in more detail. No vote to accept or adopt the 2022 statements was recorded at this meeting.

Looking ahead, staff said much of the 2023 work is complete with one remaining fund to clear and that some 2024 items have already been started. "We're at a good place with the progress of that, so it shouldn't be too delayed," Livermore said.